Senate Committee on Health and Welfare Rejects HB 317: What This Means for Our Community

Hospital Accountability Bill Fails in Louisiana Senate

A recent effort to hold hospital owners accountable for patient care hit a roadblock in Louisiana. A bill known as HB 317, proposed by State Representative Michael Echols, was rejected by a Senate committee on June 4.

The bill arose from financial troubles faced by Glenwood Regional Medical Center, which is managed by Steward Health Care. This facility filed for Chapter 11 Bankruptcy in 2024, creating uncertainty for patients.

Sterlington Mayor Matt Talbert shared his concerns during the hearing, emphasizing the impact on the community. He reflected on the struggles faced at Glenwood under its current ownership.

Echols believes that hospital owners should share responsibility for any deterioration in care. In this case, that owner is Medical Properties Trust. Typically, hospital owners lease their buildings to operators who run day-to-day operations.

The proposed legislation aimed to empower the state Attorney General to take action against owners who neglect their responsibilities. This would include penalties and possible bans on owning medical facilities in Louisiana.

Some senators questioned whether an owner should be held accountable for how their tenants manage the hospital. Echols countered that the owner sets the rental rate, which can affect the operator’s ability to provide care. He alleged that the high rent demanded by Medical Properties Trust hindered Steward’s operations.

Medical Properties Trust refuted these claims. They stated that when Steward couldn’t pay rent in 2023, they stepped in with financial support. Edward Aldag, the CEO of Medical Properties Trust, mentioned that they invested over $26 million to help keep Glenwood running and over $200 million in total across facilities in Louisiana.

As the committee wrapped up the hearing, the bill fell short, with just one senator voting in favor. State Senator Katrina Jackson Andrews tried to propose an amendment but was overruled.

After the vote, Echols expressed disappointment, stating, "I’m frustrated that Medical Properties Trust wasn’t held accountable." He stressed the importance of quality patient care in Northeast Louisiana and vowed to continue fighting for better oversight of hospital ownership.

The rejection of this bill highlights ongoing challenges in healthcare management and regulatory oversight. With hospitals facing financial strains, the balance between profit and patient care is more critical than ever. Stakeholders on all sides will need to engage in open dialogue to ensure better health outcomes for communities.

For more information on similar legislative efforts, check out the Louisiana Legislature’s official site.

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